Nick Cronkshaw and Gary Barnett (Simmons & Simmons) provide your monthly guide to the latest VAT developments that matter.
Options to acquire land
In Landlinx Estates Ltd v HMRC [2020] UKFTT 220 the First-tier Tribunal (FTT) held that the surrender of an option to purchase land falls within the scope of item 1 of VATA 1994 Sch 9 Group 1 and is in principle an exempt supply.
The case involved the grant of an option to purchase land over which the owner had not waived exemption. Before the option was exercised the owner of the property paid the option holder £1 425 000 in consideration of the release of the option to purchase land. HMRC considered that this amounted to a taxable supply made by the holder of the option (Landlinx) and not an exempt supply of land. ...
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Nick Cronkshaw and Gary Barnett (Simmons & Simmons) provide your monthly guide to the latest VAT developments that matter.
Options to acquire land
In Landlinx Estates Ltd v HMRC [2020] UKFTT 220 the First-tier Tribunal (FTT) held that the surrender of an option to purchase land falls within the scope of item 1 of VATA 1994 Sch 9 Group 1 and is in principle an exempt supply.
The case involved the grant of an option to purchase land over which the owner had not waived exemption. Before the option was exercised the owner of the property paid the option holder £1 425 000 in consideration of the release of the option to purchase land. HMRC considered that this amounted to a taxable supply made by the holder of the option (Landlinx) and not an exempt supply of land. ...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
